CSX lawsuit against Alabama is before U.S. Supreme Court

The outcome of a case pending in the U.S. Supreme Court will have a marked impact on the funding of public education on Alabama. Millions of education dollars for Alabama and tax policies nationally are on the line. This case was brought by CSX Transportation against the Alabama Department of Revenue. The rail company sued the State for exempting its non-rail competitors from a tax levy on diesel fuel. CSX contends that this violates federal law, which prohibits discriminatory taxes against railroads. But the State argues that the tax breaks are legal because railroads pay the same tax rate as everyone but those few competitors.